All blockchains using the PoS consensus mechanism (including DPoS, NPoS, etc.) have staking mechanisms, and unique Staking Economies are formed around them.
Taking the Steem blockchain as an example, users stake STEEM into STEEM POWER (SP for short). SP holders have a series of rights in the Steem blockchain, such as the right to upvote posts, the selection of supernodes, and the voting rights to the distribution of the DAO fund.
Centralized Staking Service Providers
Traditionally, SP holders will delegate the SP to a centralized staking service provider (or vote for some nodes) to obtain STEEM. On the Steem blockchain, the annualized percentage rate for SP holders can be as high as 20%-30%, and service providers will charge a service fee of 5%-20%.
There are currently 18,000+ staking service providers (https://www.stakingrewards.com/), serving a market of 146+ billion U.S. dollars, and returning profits of more than tens of billions of dollars to staking asset holders every year.
Decentralized Staking Community
Peanut is a decentralized staking platform, an experiment, and more importantly, a DAO (Decentralized Autonomous Organization).
Based on the PoS consensus mechanism, Peanut provides staking asset holders with services consistent with traditional staking service providers. The difference lies in: 1) Peanut is owned by the community instead of a single entity; 2) Peanut has a DAO governance module; 3) it can exist as an independent entity and develop on this basis.
Stake Mining
At Peanut, SP holders entrust the right to use SP to Peanut and receive PNUT as rewards. The PNUT received by the users can be traded into mainstream crypto assets such as USDT on the decentralized exchange.
Market Making
Like traditional staking service providers, Peanut has the right to use SP, and it can continue to obtain staking rewards (STEEM) through a series of operations.
Traditional staking service providers will give back this part of staking rewards to SP holders. Unlike this model, Peanut will repurchase PNUT through a decentralized exchange. Since Peanut can continuously obtain STEEM, the repurchase will be sustainable in the long-term, which has provided a certain degree of support for the price of PNUT.
Peanut has also introduced a market maker mechanism that uses PNUT to incentivize contributors who provide liquidity to PNUT trading pairs, which is known as liquidity mining. Through repurchase and market making, Peanut allows the value of PNUT to continue to increase with the growth of the community, which in turn further stimulates the development of the community.
Governance
When SP delegators receive PNUT, 10% of PNUT will be automatically given to peanut.dao, so the community DAO fund holds certain amount of assets (PNUT).
The community DAO fund is like a company's public account. The development, operation, and market partners of the community can submit development proposals to the community, describing what they can do for Peanut, and submit them to the community for voting. Once the voting approval rate of a proposal exceeds 30%, the proposal is passed and peanut.dao will issue PNUT to contributors.
DAO Services
Community developers can develop some applications for Peanut, such as community blog (blog.nutbox.io). Community members can publish their creative works on the community blog and get rewards of cryptocurrency STEEM, and the community can also get 5%-20% of the profit. This part of the proceeds will automatically enter the Peanut.community account to repurchase PNUT.
At the same time, the community has also developed an application that pays PNUT to get upvote. These applications will allow Peanut to gain sustained profits or raise its value, and promote Peanut's more sustainable development.
Changes Brought Forth
Through the above three modules, the Peanut community has become a staking DAO, which brings about the following changes:
Positive Circular Economy
The user delegates staked assets to Peanut, and Peanut will capture the income value of the staked assets and accumulate assets for the repurchase. The assets accumulated by Peanut provide value support for PNUT through decentralized repurchase. Community DAO governance further allows Peanut to be owned by the community and supports the development, operation and marketing of Peanut to promote the sustainable development of Peanut.
This series of mechanisms has helped Peanut achieve the cold launch of a decentralized staking community. Once initiated, it will activate the flywheel of positive circular economy .
Brand New Staking Economy
Unlike the traditional model of delegating STEEM POWER for STEEM rewards, Peanut has launched a brand new economic model supported by the community.
Community members stake Tokens on the underlying public chain network, vote for community nodes or delegate to the community, and receive community Tokens or other rewards. This method transforms the staking to earn interest model into a new method to support the development of the community. The biggest difference between this method and traditional ICOs and IDOs is that: 1) Token is staked on the underlying public chain network and will not be lost due to any mistakes in the community; 2 ) Voting or delegating for community nodes can be cancelled at any time; 3) Users have the opportunity to participate in the early construction of high-quality communities, and application-oriented communities have also received much-needed support.
Completing the Puzzle of Web3.0
As a decentralized staking community, Peanut has achieved a complete economic closed loop, which can serve as a method of early community cold launch, and this method will become an inseparable part of future decentralized autonomous organizations. The combination of decentralized staking applications and DeFi will open up the "Staking + DeFi" market. Decentralized staking applications can also inject endless incentives into the development of decentralized content communities, looking forward to the Web3.0 era initiated by the decentralized content communities.
Translated from: Peanut: 一个全新的质押类DAO，助力社区启动正向经济循环飞轮。
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